Lender More 2 Life has launched a Tailored Choice plan for equity release, and has introduced a simplified underwriting process to ensure advisers can receive quick decisions on whether clients qualify for enhanced loan-to-values.
Customers can now qualify for an enhancement on health grounds, potentially worth up to 50 per cent of their house value. For those opting to drawdown cash over time rather than taking a maximum cash sum, bosses claimed the new Tailored Choice plan offers some of the highest levels of reserve on the market.
Customers can release either a tax-free cash lump sum from the property or a smaller up-front sum and then take cash in stages as and when it is needed.
Tailored Choice’s simplified underwriting process involves just 13 health and lifestyle questions which advisers can take clients through to ensure everyone who can qualify for enhanced LTVs does.
The minimum age is 55 and the minimum property value is £60,000 with a maximum of £750,000. The minimum loan is £15,000 and minimum additional drawdown amounts are £5,000.
Tailored Choice also offers a guaranteed inheritance feature as standard for all drawdown customers that ensures a share of the property value can be passed on to beneficiaries when clients die or go into long-term care.
Dave Harris, managing director at More 2 Life, said Tailored Choice will substantially increase the use of enhanced plans which currently account for around 13 per cent of the equity release market.
Mr Harris said: “People need more flexible options for retirement income and the option of accessing property wealth as the cornerstone of retirement planning will continue to grow.
“However every client is different and they need solutions that can be tailored to meet their individual needs, both now and in the future. This plan allows inheritance planning to be factored in so the property can be utilised to care for loved ones in future.”